Generation Z workers in the UK are confronting a mix of crippling anxiety, weak basic skills and costly hiring regulations, according to business owner Rachel Watkyn of Tiny Box. in a Radio 4 interview following Alan Milburn’s review, Watkyn described how many young employees struggle to answer phones, arrive on time or calculate a simple 10 percent figure, while employers also face higher minimum‑wage and National Insurance bills.

Rachel Watkyn’s Tiny Box sees 20% of staff battling anxiety and numeracy issues

Watkyn, who runs the country’s largest gift‑packaging firm and employs about 100 people,says roughly one‑fifth of her workforce are Gen Z hires who frequently request days off for anxiety or arrive late because they do not understand shift timings. She noted that “many cannot even calculate a simple 10 percent of a value,” highlighting a fundamental numeracy gap that hampers productivity.

Alan Milburn’s review predicts 1.25 million young people will become economically inactive

The government‑commissioned review, cited by Watkyn, warns that a million‑plus youths are likely to drop out of education, employment or training in the next few years. this forecast underpins the urgency for employers to adapt, as the pool of ready‑made talent shrinks while demand for entry‑level labour remains high.

Labour’s wage rise and NI hikes add £2‑£3 extra cost per Gen Z hire

According to the source, recent policy moves that lifted the minimum wage and increased employer National Insurance contributions have pushed the cost of hiring a young worker up by an estimated £2‑£3 per hour.. This financial pressure compounds the difficulty of onboarding staff who need extra training and mental‑health support.

Office for National Statistics reports 8,900 weekly redundancies – a 76% jump since 2025

ONS data, referenced in the briefing, show that potential redundancies now average 8,900 per week, a rise of 76 percent from the same period in 2025, marking the highest weekly figure since the pandemic. The surge adds further strain on businesses tryiing to retain and develop inexperienced staff.

What still isn’t clear: the scale of social‑media‑driven communication loss

While Watkyn and Amazon UK manager John Boumphrey blame heavy social‑media use and a preference for texting for eroding face‑to‑face skills, the exact proportion of Gen Z workers whose communication deficits stem from online habits remains unverified. additionally, the long‑term impact of COVID‑19‑related trauma on workplace readiness has not been quantified.